Repairs and Maintenance To Prperty Following a Tenancy

09/05/2019 10:53:46
I had been renting out my prperty whilst I was in Australia, but when I returned I discovered the tenant had left the house and the garden in a very poor state, and had failed to comply with many of the clauses of the Tenancy Agreement. I raised this with the letting agent who had provided me with the exit inspection report, which turned out to be totally inadequate and inaccurate. I requested all of the tenant’s deposit to be returned, as the cost of putting right the failures to meet the clauses of the Tenancy Agreement far exceeded the deposit. The tenant did not agree, so I agreed with the letting agent to go to arbitration thinking that I had a good case.

As requested by the agent, I prepared an extensive document, which on a room by room basis referred to the Tenancy Agreement clauses that the tenant had failed to comply with, and the reference number of the 90 photos that I provided as evidence. The report and the photos were allegedly submitted to the arbitrator by the letting agent, but were not listed as evidence in the arbitrator’s report or referred to. Invoices and quotations that I had submitted were also not referred to in the report, including an invoice and report from a pest extermination company for fumigating the house to kill off the carpet moth infestation that had ruined 3 good quality carpets. The only references in the arbitrator’s report were the assessor’s report and the inventory, which the letting agent denied existed, despite the arbitrator’s report stating it had been submitted by the tenant and prepared by the letting agent. So I can only presume that my evidence was not considered, as I was only awarded £165 out of a deposit of £850.

I have tried to obtain the truth from the letting agent, but their responses are either incorrect or ambiguous. I also wrote to the arbitrator simply asking for a list of the evidence that was submitted by the letting agent, but they have not responded, despite me including a stamped, addressed envelope. I am therefore left with a major deficit on what is has cost me to put right the issues, and what I received from the tenant’s deposit. As the damage was caused during the Tenancy, can I claim for some of this work, i.e. the scope that was not covered by the arbitrator, on my tax return, even though I am no longer letting the property?
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Re:Repairs and Maintenance To Prperty Following a Tenancy

09/05/2019 12:24:41

Thanks for your question.

I am afraid we cannot get involved in any dispute between you and your tenant or the letting agent.

As you are no longer letting the property and the expenses were incurred after the property income ceased, the expenses for putting things right cannot be claimed against the rental income, as they do not meet the wholly and exclusively rule.

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Repairs and Maintenance To Prperty Following a Tenancy

09/05/2019 14:47:16

Thanks for your response. I raised the issue because I have incurred the cost to make the place habitable again, although I never expected HMRC to get involved in the dispute. Ironically, you have informed me that I cannot claim, as the property rental had ceased, but the agent deducted £25 off my portion of the deposit for the cost of sending a rental income return to HMRC. Can you please let me know if rental returns are required by HMRC several months after a Tenancy has ended and consequently the income has ceased, as the agent also deducted a gas inspection fee from my deposit for a gas installation inspection that allegedly took place several months after the rental ceased, which never happened. This was subsequently refunded when questioned, so I would like to know if the HMRC claim was a genuine requirement.

I will register with your research team.

Re:Repairs and Maintenance To Prperty Following a Tenancy

10/05/2019 12:56:37

Thank you for your further question. I am assuming when you say you have been charged £25.00 for the submission of a rental income return you are referring to the submission of a Self-Assessment return. If this is the case any fee that you have been charged is not wholly and exclusively in connection with the rental business and is therefore not an allowable expense. The only returns that HMRC require in respect of rental income are Self-Assessment returns submitted by individuals. Any further expenses that you have incurred after the rental business ceased are not allowable. I hope this helps